The European Commission said Thursday it opened an antitrust investigation into a deal between U.S. pharmaceutical company Cephalon Inc. (CEPH) and Israel's generic drugs firm Teva Pharmaceutical Industries Ltd. (TEVA) because it could have hindered the entry into the European market of a generic version of Modafinil, a drug treating sleeping disorders.

The commission, which has antitrust powers within the European Union, explained that it is investigating a 2005 agreement under which the two companies settled patent infringement disputes in the U.K. and the U.S. concerning Modafinil, sold under the brand name Provigil.

According to the deal, Teva undertook not to sell its generic version of Modafinil in Europe before October 2012, the commission explained.

The EU has been targeting the pharmaceutical sector to make sure that deals to delay the market entry of generics aren't breaching the bloc's antitrust rules.

-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88; alessandro.torello@dowjones.com
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